Junior Volatility Trader
Position Purpose & Summary
Cargill Metals Supply Chain (CMSC) works with customers in the global trading, distribution and processing of raw materials and steel products. These products include: iron ore, billets, hot rolled, cold rolled, coated products, wire-rods, bars and sections. From its offices worldwide, it serves miners, mills, processors and end users.
The steel industry is going through a period of disruptive change. Ever increasing complexity, global overcapacity in steel, the commodity super cycle, extreme volatility in both raw material and steel prices are just some of the challenges reshaping the industry and creating opportunities for CMS to play a major role in the industry’s evolution.
CMS strategy is focused on the needs and interests of our strategic customers in China. We have a strong conviction that there is a lot of unmonetized value within the China Steel Industry and we believe that we can help our customers to unlock this value by partnering with us to create tailored solutions to help them succeed.
40% Convexity Trading
o With direction, execute trades of proprietary trading convexity book and client facing market making books.
o Able to efficiently source vol position in domestic and Singapore market. Collect insights with help from volatility trading (market dynamics) and client flow. This requires interaction with market participants, including but not limited to brokers, traders, and research institutes.
o Understand client facing convexity book management from market making prospective. This includes understanding risks from physical embedded options, capacity to assist pricing with instructions from sales, managing the risk in either open market or internal proprietary trading books, and forming insights from client flows for proprietary trading prospective.
o Proactively work with physical merchandising teams in structuring embedded trades, and forming proprietary trading strategies.
o Support other trading books in managing convexity risk exposure with direction and seeking best execution, and support overall BU trading book in optimizing trading position. This includes employing options and embedded options to improve leverage ratio, to reduce overall working capital, to increase funding efficiency, and/or to lower overall BU risk.
o Assist in OTC trading activities with direction, includes margining, credit exposure, and new trading counterparties onboarding. This will require internal collaboration with credit, finance, legal, and TA
20% Customer book management and supervision
o Drive to help source positions that the BU and sub-books need.
20% Active contribution to product line and BU project or business initiatives
o Collaborate with support functions to improve internal systems. This includes trades executing system, trades booking system, and internal trades reconciliation process.
o Proactively work with IT and other teams to initiate listed option trading activities from ground up. This includes constructing trading platform with direction, understanding exchange policies, and managing risks alongside with existing trading books.
10% Customer solution structuring and pitching
o With help, assist in designing structure solutions for customers.
o With help, assist in designing optimal hedging plan for new optionality structure, using data and insights.
o With help, facilitate the pitching of solutions to customers
o With help, structure solutions as needed by sales team
10% Customer Communication
o With help, assist senior sales in educating markets about how to hedge their risk thru using non-linear product.
o Collect relevant middle term to long term insights from both traders and producers and understand the trend of the market
o Engage with market participants and generate insights re- trading trends, NFA, and exchange policies.
Education, Experience, Skills
• Experience with following:
• Derivatives/Physical pricing and hedging;
• Convexity trading experience/ Convexity market marking trading
• Fundamental analysis
• 0-3 years of relevant experience, preferably in trading (listed and OTC), especially in commodity space
• Strong mathematical and data analysis capabilities.
• Strong coding capabilities, able to initiate pricing tools from zero.
• Able to work proactively under high pressure, and effectively execute the game plan.
• Excellent presentation, oral and written communication skills in both English and Mandarin. Ability to communicate complex issues in a clear manner.
• Communicate effectively both internally and externally.
• Strategic thinker with ability to influence ideas convincingly and champion for action
• Effective interpersonal skills in a matrix environment that requires ability to influence across organizational / functional boundaries and constituencies in a diverse workplace
• Demonstrated cross cultural agility
• Able to multi-task and prioritize tasks
• Team player, high degree of initiative and ability to work independently
• Degree in economics, engineering, science and technology or similar discipline
• Experience in a multi-national corporation or foreign owned experience
• Experience in structured product trading, structuring and sales
• Experience in option trading
• Understanding of trading and risk management
• Understanding of exchange policies
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